The Pan African Tobacco Group recently broke ground for a $20 million tobacco processing factory in Arua, Uganda. The new facility, which includes a 30,000 square meter warehouse, will have a production capacity of 10 tons per hour.

“As part of this expansion, PTG will manufacture high quality products, while creating hundreds of well-paying jobs in sub-Saharan Africa,” said Tribert Rujugiro Ayabatwa, the founder of PTG. “I am delighted to announce that our projects are in progress.”

David Wakikona, Uganda’s trade minister, laid the factory’s first stone during a ceremony on May 20. He described the site as a source of jobs and timely investment, while praising the commitment of PTG to improve tobacco production and the quality of exports to other regions.

“The opening of a plant of this size in a rural area is a defining moment in the history of Uganda,” said Wakikona. “It is all the more important given the jobs that will be created.”

Upon completion, five months from now, the factory will employ 200 permanent and 2,000 seasonal workers. It will also contract with 1,500 drivers to transport its products to destinations throughout the region. The number of Arua leaf growers supplying PTG will increase to 13,000.

PTG already has a strong presence in the region, where it invests $18 million a year in tobacco cultivation.